Slide 1: 2021 Full Year Results
Slide 2: Agenda
Agenda Executive summary FY 21 financial results Update on strategic priorities AMP Capital Private Markets update FY 21 takeaways oir W Nd
Slide 3: Executive summary
Slide 4: FY 21 NPAT (underlying) of A$356m up 52.8% on FY 20
FY 21 NPAT (underlying) of A$356m up Demerger program on track for Delivery of demerger and associated 52.8% on FY 20, assisted by AMP Bank completion in 1H 22 transactions and reorganisation earnings and recovery of credit provisions, Reorganisation nearing completion: and strong infrastructure per
Slide 5: Reduced fees across Master Trust and platforms products
Reduced fees across Master Trust and Employees across all levels of the Strong progress on AMP’s Innovate platforms products. Delivered free organisation participated in workshops to Reconciliation Action Plan, with over 60% retirement health checks and financial to inform new purpose and values of
Slide 6: FY 21 financial results
Slide 7: Group NPAT (underlying) by business unit
AMP Bank 153 69 84 111 37.8 Australian Wealth Management 48 21 27 64 (25.0) New Zealand Wealth Management 39 20 19 35 11.4 AMP Capital2 154 94 60 131 17.6 Group Office (38) (29) (9) (108) 64.8 NPAT (underlying)3 356 175 181 233 52.8 Items reported below NPAT4 (608) (573) (35) (56) n/a NPAT (statutor
Slide 8: Items reported below NPAT
Client remediation and related costs (78) (45) (33) (73) (6.8) Transformation cost out (133) (72) (61) (51) (160.8) Impairments1 (312) (312) - (32) n/a Demerger costs (75) (75) - - n/a Other items2 11 (60) 71 (33) n/a Amortisation of intangible assets (21) (9) (12) (58) 63.8 Risk management, governa
Slide 9: Adjusted split of historical earnings
2 1. This is an adjusted split of historical earnings and does not reflect the post-demerger, pro forma view of the demerged entities, including final capital structure and cost allocations. Excludes costs currently allocated to Infrastructure Debt that will largely be retained by Private Markets on
Slide 10: AMP Bank: FY 21 NPAT of A$153m
FY 21 NPAT of A$153m increased A$42m (37.8%) from FY 20 Improved macro-economic outlook resulted in A$26m release of credit-loss provision previously taken in response to COVID-19 in FY 20 Net interest margin of 1.62% in FY 21, 3bps higher than FY 20, driven by lower funding and deposit costs in 1H
Slide 11: AMP Bank: maintaining book quality
Continued focus on maintaining book quality with 69% of customers being owner-occupied Average book loan to value ratio (LVR) of 67% in line with FY 20; dynamic LVR weighted average for the Bank’s existing mortgage business improved 9% to 58% in correlation with increased property values Interest on
Slide 12: Australian Wealth Management: NPAT of A$48m
NPAT decreased to A$48m in FY 21 (FY 20: A$64m), impacted by Advice asset impairments in 1H 21, repricing in Master Trust and Platforms and the cessation of grandfathered remuneration FY 21 AUM of A$134b was 8% (A$9.9b) higher than FY 20, driven by strong investment market returns partly offset by n
Slide 13: Master Trust, Platforms and Advice results
FY 21 NPAT of A$110m (FY 20: A$103m) FY 21 NPAT of A$90m (FY 20: A$113m) FY 21 NPAT loss of A$146m, A$2m supported by higher investment income reflected acceleration of transformation higher than FY 20, driven by a decline in from North Guarantee offsetting the activity including pricing changes rev
Slide 14: MAG contribution transferred to Master Trust and Platforms
1 1 1. NPAT contribution from MAG transferred to Master Trust (A$21m) and Platforms (A$13m) divisions, where AUM is derived. Historical splits of MAG revenues and costs into Master Trust, Platforms and Other are illustrative, based on management estimates and may be subject to change. 14 2. Includes
Slide 15: New Zealand Wealth Management: NPAT up 11% to A$39m
FY 21 NPAT increased 11% to A$39m (FY 20: A$35m) primarily due to a rebound in investment markets and improved cost performance AUM of A$12.2b decreased A$0.2b (2%) from FY 20 driven by conclusion of term as KiwiSaver default provider, contributing a net outflow of A$0.6b in FY 21 AMP continues as m
Slide 16: AMP Capital: NPAT increased 18% to A$154m
NPAT increased 18% to A$154m1 (FY 20: A$131m) driven by strong performance fees from closed-end infrastructure funds AUM-based earnings reduced 3% to A$545m (FY 20: A$564m), driven by net cash outflows and fee reductions including short-term fee concessions in Core Infrastructure and Real Estate, pa
Slide 17: Group Office
Group office costs (66) (34) (32) (85) 22.4 Interest expense on corporate debt (51) (27) (24) (58) 12.1 Investment income from Group office investible capital 19 5 14 (6) n/a Other investment income 60 27 33 41 46.3 Investment income total 79 32 47 35 125.7 Group office NPAT (post-tax) (38) (29) (9)
Slide 18: Disciplined cost management has reduced costs by A$100m
Disciplined cost management has reduced costs by A$100m (A$140m including variable) through the simplification of organisational structures, infrastructure and technology and a reduction of property footprint This brings total cost reductions by FY 21 to A$260m (of A$300m total targeted cost reducti
Slide 19: Capital above target requirements of A$383m
— At 31 December 2021, total eligible capital above target requirements was A$383m (A$524m as at 31 December 2020) — FY 21 position reflects a number of large adjustments including: — A$252m of statutory losses including (A$312m) related to asset impairments — A$250m utilisation of Tier 2 hybrid ins
Slide 20: Transactions expected to settle in 1H 22
— Expect a number of the previously announced transactions to settle in 1H 22 as well as a number of separation and transformation costs to be incurred — Balance sheet separation to create two sustainable capital structures: — Private Markets business targeting minimal debt and maintaining liquidity
Slide 21: FY 22 AUM based revenue margins and cost outlook
– FY 22 controllable cost target of A$725m (before MAG costs – FY 22 AUM based revenue margins expected to be ~55bps primarily reflecting the full run- transferred from AMP Capital of A$70m, A$795m including MAG) rate of Master Trust simplification in Q3 21 partially offset by ~1bp benefit from MAG
Slide 22: Update on strategic priorities
Slide 23: Strategic priorities and targets
Invest to grow AMP Bank — Targeting 2x bank asset (system) growth through Grow the North platform, building new relationships with external next three years financial advisers — Increase EFA inflows from A$1.2b to A$3.8b in FY 24 Deliver stable earnings and optimal client outcomes in Master Trust —
Slide 24: Priorities for the next months
Priorities for the next 12 months Clear roadmap to simplify and reposition for growth _@ @ | Complete demerger Reduce cost base Focus on EFA flows Explore new business Purpose and values in Platforms opportunities Section 31 AMP LIMITED | 2021 FULL YEAR RESULTS 24
Slide 25: Operational separation and cost-out delivery
Operational separation complete including: On track to deliver A$300 million cost-out program in FY 22; Appointed Chairman and Deputy Chairman designates, A$260 million cost out achieved from FY 19 – FY 21 Management Equity Plan established, new brand announced (10 February) Disciplined cost managem
Slide 26: Commitment to cost-out targets
Demonstrated commitment and capability to deliver to cost-out targets with A$140m gross cost out delivered in FY 21 Cumulatively A$260m of gross cost-out savings have been delivered since FY 19 FY 21 A$140m gross cost out delivered includes A$40m from variable costs, A$100m from controllable costs A
Slide 27: AMP Bank: home loan origination capacity
Increased capacity in home loan origination by 70% in FY 21 Improve customer ‘Time to Yes’ for mortgage approval by ~30% in FY 22 Simplified Bank platform architecture and modernised core system Continue to maintain deposit-to-loan ratio of more than 75% to optimise funding mix Auto Credit Decisioni
Slide 28: Platforms: Equity Managed Portfolios and North growth
Launched Equity Managed Portfolios in Q4 21 providing 23 Launch of market-first retirement solution on North platform in Q3 22 investment portfolio options for advisers and their clients Transform North sales and service to accelerate growth in EFA flows Expanded range of managed portfolios, more th
Slide 29: Expanding direct-to-consumer offers
Expanding direct-to-consumer (D2C) offers in AMP Bank will provide Strong progress against action plan on inclusion and workplace capability and learnings to build D2C channels for Australian Wealth conduct: Management business — Extended inclusive leadership training to all employees — Launched new
Slide 30: AMP Capital Private Markets update
Slide 31: Infrastructure Debt sale
— The deal includes the entire Infrastructure Debt investment strategy including A$7 billion in invested AUM — Private Markets will retain valuable sponsor investments and carried interest, providing a strong revenue stream in coming years — The transaction will result in ~A$20 million of direct cos
Slide 32: Real estate and infrastructure equity managers
Leading Australian real estate manager Leading global manager in infrastructure equity A$23b A$19b Invested AUM1 Invested AUM1 Over 50 investment professionals focused on asset origination and active Team of ~500 real estate professionals asset management 59 institutional clients located predominant
Slide 33: Revenue mix shifting towards closed-end funds
— Revenue mix shifting towards closed-end fund structures and separate accounts, with performance fees / carry driving earnings growth — Increasing revenue contribution has been from ‘value add’ infrastructure equity — Stable earnings contribution from core infrastructure equity and real estate Dive
Slide 34: Performance and transaction fees vary year to year
— Performance and transaction fees can vary considerably from year to year — Carried interest from closed-end infrastructure funds was a significant contributor to FY 21 earnings — FY 20 performance and transaction fees reflected run-off of performance fees on open-end funds and COVID-19 impacts; pa
Slide 35: Operating as an autonomous subsidiary
• Create new product opportunities alongside current investment strategies • Build a global client solutions team • Implement organisational • Scale existing fund series structure • Continue the global • Create efficiencies and remove infrastructure equity fund series • Operate as an autonomous dupl
Slide 36: Private Markets separation milestones
— Shawn Johnson announced as AMP Capital CEO (June 2021) — Nadine Lennie announced as Chief Financial Officer (January 2022) — Announced sale of GEFI business (July 2021) — New brand name announced (February 2022) — New board appointments for Private Markets: Patrick Snowball — Infrastructure Debt s
Slide 37: MAG transfer and GEFI sale; cost base targets
— Transfer of Multi-Asset Group (MAG) to AMP Australian Wealth Management to complete by 1H 22 — Sale of GEFI business to complete in 1H 22 — Removal of residual costs targeted in 1H 22 — The transaction will result in the transfer of A$20m in Transfer of direct investment and support team costs, an
Slide 38: Client profile and US market opportunity
1% — US market largely untapped with <2% of total AUM US sourced3 — Strong performance in South Korea, Hong Kong, and Singapore an indicator for wider success across Asia — Europe is the most established market outside of Australia 1. Figures are rounded. All figures exclude Infrastructure Debt and
Slide 39: Recent achievements and priorities for Private Markets
— Recapitalisation of AMP Capital Retail Trust (~A$2.2b investment by new consortium of three investors) — Raise and deploy new capital for institutional funds — AMP Capital to continue as trustee and manager of AWOF — Secure new separately managed account mandates — Delivered A$800m development of
Slide 40: New brand: Collimate Capital
NEW BRAND ¢ COLLIMATE CAPITAL will be the name of the listed private markets business * The definition of COLLIMATE is to make rays of light or particles parallel = Ametaphor for alignment, clarity and precision = It speaks to our vision, foresight and expertise in long-term value creation ° The bra
Slide 41: FY 21 key takeaways
Slide 42: FY 21 NPAT (underlying) of A$356m up 52.8%
FY 21 NPAT (underlying) of A$356m up Complete demerger of AMP Limited and Prepare for demerger and listing on the ASX 52.8% on FY 20 driven by AMP Bank Collimate Capital in 1H 22 June 2022 earnings and AMP Capital performance fees Reduce costs with A$40m of cost out to be Complete sale of Infrastruc
Slide 43: Appendix
Slide 44: FY 22 outlook
– FY 22 AUM based revenue margins expected – Targeting strong net cash flow growth leading – FY 22 controllable cost target of A$725m – Balance sheet well-positioned to support new to be ~55bps primarily reflecting the full run- to ~10% annual growth in AUM across the (before MAG costs transferred f
Slide 45: Demerger timeline
Demerger timeline AMP Capital Private Markets Management Equity Plan Infrastructure Debt sale Commenced transfer of established Operational complete Mult? Asset Group (MAG) separation of AMP Demerger to Australian Wealth Capital Private announced Management Sale of Markets from AMP Resolution Life L
Slide 46: Client NPS and sustainability highlights
Client NPS average across all Australian customers remained stable at +27 Maintained ‘A-’ leadership rating in 2021 CDP program, the second Supported 995 superannuation withdrawals on compassionate grounds highest rating available and 1,750 withdrawals for those experiencing financial hardship (tota
Slide 47: Capital resources and liquidity
Total capital resources 5,305 6,332 6,342 (16.4) Total corporate subordinated debt (603) (876) (876) (31.2) Total corporate senior debt (828) (1,254) (1,254) (34.0) Shareholder equity 3,874 4,202 4,212 (8.0) Total eligible capital resources 2,512 2,452 2,506 0.2 Surplus capital above target requirem
Slide 48: China joint ventures (CLAMP)
\ AUM at FY 20 increased 26% annually, while A$ based earnings from the joint venture increased 28% In FY 21, pension markets overall have continued strong growth with continued promotion of Pillar 2 seeing double-digit growth, while Occupational Pensions for public servants across China are now ful
Slide 49: AMP Bank financial summary
Net interest income (A$m) 399 195 204 391 2.0 Fee and other income (A$m) 14 9 5 10 40.0 Variable costs (A$m) (68) (38) (30) (118) 42.4 Controllable costs (A$m) (126) (67) (59) (124) (1.6) NPAT (underlying) (A$m)1 153 69 84 111 37.8 Residential mortgage book (A$m) 21,741 21,741 20,619 20,188 7.7 Depo
Slide 50: AMP Bank peer comparison
1. Based on current disclosure of regional bank peers. 50
Slide 51: AMP Bank peer comparison and lending metrics
1. Based on current disclosure of regional bank peers. The ratio represents the relevant latest financial year for each peer which may not be aligned to AMP’s financial year 2. Based on Perpetual RMRT (Risk Manager’s roundtable) data. Data as of June 2021. 51
Slide 52: Australian Wealth Management financial summary
AUM based revenue (A$m) 2 858 411 447 907 (5.4) Advice revenue (A$m) 58 35 23 115 (49.6) Other revenue (A$m) 35 17 18 40 (12.5) Variable costs (A$m) (380) (188) (192) (419) 9.3 Controllable costs (A$m) (518) (256) (262) (552) 6.2 NPAT (underlying) (A$m)1 48 21 27 64 (25.0) Average AUM (A$b)3,4 129.4
Slide 53: Australian Wealth Management supplementary data
1. Practice numbers are aggregated in the case where a single practice may have multiple locations and/or operate under multiple entities. 2. Practices by size based on number of Authorised Representatives (AR). 3. Trailing market shares are reported in AMP full year investor reports. Disclosure is
Slide 54: New Zealand Wealth Management financial summary
Total revenue (A$m) 150 74 76 151 (0.7) Controllable costs (A$m) (36) (18) (18) (38) 5.3 NPAT (underlying) (A$m)1,2 39 20 19 35 11.4 Average AUM (A$b)3 12.6 12.8 12.5 11.9 6.1 Total net cashflows (A$m) (1,007) (758) (249) (57) n/a AUM based revenue to average AUM (bps) 92 89 96 97 n/a Cost to income
Slide 55: New Zealand Wealth Management supplementary data
1. FundSource Limited, September 2021. 2. ErisksensGlobal Master Trust Survey, September 2021. 55
Slide 56: Adjusted earnings including MAG transfer
1. Earnings contribution from MAG transferred to Master Trust (A$21m) and Platforms (A$13m) divisions within AWM, where AUM is derived. Historical splits of MAG revenues and costs into Master Trust, Platforms and Other are illustrative, based on management estimates and may be subject to change. 2.
Slide 57: MAG AUM transition to AWM
1. As at FY21, approximately A$7.9b of AUM is expected to transition from MAG to AWM in 1H 22, with A$1.1b moving to Platforms, nil transferred to Master Trust and A$6.8b moving to Wealth & Other. 2. NPAT contribution from MAG transferred to Master Trust (A$21m) and Platforms (A$13m) divisions, wher
Slide 58: AMP Capital financial summary
AUM based management fees (A$m) 545 270 275 564 (3.4) Non-AUM based management fees (A$m) 90 46 44 96 (6.3) Performance and transaction fees (A$m) 74 66 8 51 45.1 Seed and sponsor (A$m) 18 11 7 6 200.0 Controllable costs (A$m) (515) (261) (254) (525) 1.9 NPAT (underlying) (A$m)1,2 154 94 60 131 17.6
Slide 59: Private Markets financial performance
FY 21 impacted by strong performance fees on infrastructure equity closed-end funds. Recent business performance impacted by irregularity of performance and transaction fees and COVID-19 related impacts on some seed & sponsor asset classes. 1. Controllable costs does not represent a post demerger pe
Slide 60: Private Markets invested AUM
1. AUM is provided as at 31 December 2021; invested AUM excluding uncalled commitments, excludes all JV-related AUM. 60
Slide 61: Important notice and disclaimer
This presentation has been prepared by AMP Limited (ABN 49 079 354 519) (“AMP"). It is a presentation of general background information about AMP’s activities current at the date of this presentation, which may be subject to change. The information is in a summary form and does not purport to be com
Slide 62: Non-IFRS financial information and disclaimer
Investors should be aware that certain financial measures included in this presentation are The securities mentioned herein have not been, and will not be, registered under the U.S. ‘non-IFRS financial information’ under ASIC Regulatory Guide 230: ‘Disclosing non-IFRS Securities Act, and may not be
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